Phoenix rising: Day 1 update

Nice rally yesterday! Unfortunately, yesterday's market action confirms my previous suspicions that this is a bear market rally and not a rally off THE BOTTOM.

I have commented before that true bottoms that are conducive to the Phoenix effect tend to be initially led by large caps and not small caps. Yesteday saw the small cap Russell 2000 lead the large cap S&P 500 with a return of 4.5% to 4.0%. Bespoke also reported that the best performers in yesterday's rally were smaller and beaten up stocks.

Enjoy the ride but keep tight trailing stops.